Eagle Villas Apartments to remain affordable housing

Eagle County recently issued the following press release on the Eagle Villas Apartments remaining affordable housing:

The Eagle County Housing and Development Authority (ECHDA), in partnership with Ulysses Development Group (UDG) and the Colorado Department of Local Affairs (DOLA), is pleased to announce the successful resyndication of Eagle Villas Apartments in the Town of Eagle. This milestone ensures the continued affordability and sustainability of the 120-unit apartment community for decades to come.

Eagle Villas was constructed in the mid-1990s and was originally financed through the Low Income Housing Tax Credit (LIHTC) program. The property faced the expiration of its 30-year rental restrictions at the end of 2024. Without intervention, most units would have converted to market-rate housing, which would have threatened the loss of critical affordable homes for local families. In June 2024, ECHDA, UDG, and DOLA partnered to acquire the property and preserve its affordability.

The resyndication renews the property’s affordable housing commitment and brings in new investment through the LIHTC program. This process secures permanent financing and funds significant rehabilitation, providing an estimated $9.5 million, or about $80,000 per unit, for upgrades. These improvements will maintain affordable rents for residents and enhance their quality of life.

The permanent financing structure for Eagle Villas totals $68.8 million and includes a combination of debt, tax credit equity, and subordinate loans from both ECHDA and DOLA. The project’s affordability attracted $35.4 million in cash contributions from tax credit equity, DOLA, and ECHDA. Without these critical sources, rents would have needed to increase by more than $1,900 per month, which is more than double current rents.

“The resyndication of Eagle Villas marks a vital step in preserving quality, affordable housing for our community,” said Jeanne McQueeney, ECHDA Chair. “We are proud to support efforts that ensure long-term stability for residents while reinvesting in the future of this property. Partnerships like this strengthen our mission to provide safe and sustainable housing options for everyone.”
ECHDA’s partnership in Eagle Villas is multidimensional. ECHDA remains a Special Limited Partner in the ownership structure, which enables a real property tax exemption. The agency also serves as a subordinate lender and acted as the issuer of the multifamily housing revenue bonds.

“Affordable housing projects, particularly preservation deals, in rural mountain communities, are very challenging. We appreciate ECHDA and DOLA’s flexibility and continued partnership in Eagle Villas. We are thrilled to be a part of the community in Eagle,” said Blaise Rastello, Vice President of Ulysses Development Group.
Eagle Villas Apartments will continue to serve families and individuals in Eagle County, providing stable, affordable homes and supporting the community’s ongoing efforts to address local housing needs.